Parkam Foods deal tastes good for buyer
A SUPPLIER of processed meat products has acquired a rival Yorkshire firm to boost its standing in the premium market in an undisclosed deal.
Tulip has bought out West Yorkshire-based Parkam Foods which manufactures premium products for the UK retail and food-service sectors.
Parkam Foods, based at Liversedge, consists of four companies – Parkam Foods, Tranfoods, Trophy Foods and Freshway – with a combined total of 750 employees and expected revenue for 2011/12 of around £115m.
Warwick-based Tulip handles the processing activities in the UK for the international Danish Crown group which is headquartered in Randers, central Denmark.
The company operates within four main product groups – bacon, luncheon meat, canned goods and poultry products.
It also sells Spam and Stagg chilli products for Hormel Foods International in the UK, employing around 3,500 people across 19 UK sites with an estimated turnover of £1.1bn.
Tulip said the acquisition would strengthen its position in the market by adding new products to its portfolio as well as further increasing its sales to the biggest UK retail chains.
Chief executive Steve Murrells said: “The great challenge will be exploiting the synergies arising from the acquisition of Parkam to boost the value of the company’s products.
“Tulip is already a strong supplier of high-quality products, but perhaps not necessarily with a sufficiently strong presence in the premium segment. This gap will now be filled by the acquisition of Parkam Foods.”
